Does Any Firm Offer Licensed Traders More than 2-1 Leverage on Overnight Positions

Discussion in 'Prop Firms' started by aeliodon, Jul 27, 2008.

  1. I want to know about Assent in particular and other firms in general.

    If you get licensed and have a good track record of managing risk - how much overnight leverage can you get at a prop firm?

    I know Don Bright has said in the past that he'll give any trader a million for overnight positions on a 25k deposit, but that money is subject to a "haircut" charge. What is a "haircut" charge?
  2. If you lose Don's money he gets to shave your head.
  3. As much fun as that sounds, we might not do that .... well, maybe, LOL.

    We slow naked overnights down at about 10 to one, and hedged overnights at about 30 to one. Haircut is simply a risk fee. And you get 6 times equity for hedged positions overnight free, and 12 times is only 1 percent per year, pretty cheap.

  4. GGSAE


    Haircuts are a normal part of the game but you have to be smart in how much you're willing to pay from expected gains...when i first started pairs i nearly bleed my account to death because I was constantly holding 20 times or more with a small account on dead capital that wasn't going anywhere...gradually it became a huge factor toward being consistently profitable; it's different for every trader.
  5. Excellent commentary, I agree completely. Every trader should work out their gameplan with all the facts.

  6. Wowwww...and al this time i thought you were conservative